Group Risk Management

The Executive Committee of the Board of Directors considers the careful and appropriate management of risk as an important management role.  Managing business risk to deliver opportunities is a key element of all the Group’s business activities.  The significant business risks are understood and documented.  The business context determines in each situation the level of acceptable risk and controls.

The main features of the Group’s system of risk management include:

- Group statements on strategic direction.
- Clear business objectives and business principles.
- An established risk policy.
- Annual review of key business risks.
- A continuing process for identification and evaluation of principal risks to the achievement of business objectives.
- Management processes to mitigate significant risks to an acceptable level.
- Ongoing monitoring of significant risks and internal and external environmental factors that may change the Group’s risk profile.
- A review by the Group of both the type and amount of external insurance that the Group buys, bearing in mind the availability of such cover, its cost and the likelihood and magnitude of the risks involved.

In addition to the annual review of principal risks, there is a process of regular reporting to the Board through the Audit Committee on the status of the risk management process.

The Group continues to develop its risk management and internal control systems, which include:
- The appointment of a Group Head of Risk.
- A clear strategy to further enhance the Group’s approach to risk management, internal control and insurance.
- The review and development of a Group risk framework.
- Improved scope and robustness of the annual review of internal control process.
- Further evolution of residual risk plans, including insurance strategy and business continuity planning.
- Continued development of in-country risk and internal control capabilities.
- Further refinements to the ExCom Group risk review process.

ENRC has a ‘top-down’ risk management approach which focuses on the key risks whilst executing the Group business strategy.  To further enhance the Group’s approach to risk management at a business unit level, the principles of the international standard for risk management ISO 31000 have been adopted where appropriate.